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Schumpeter and Schumpeterians on economic policy issues: re-reading Schumpeter through the lens of institutional and behavioral economics. An introduction to the special issue

Author

Listed:
  • Agnès Festré

    () (University Nice Sophia Antipolis and GREDEG)

  • Odile Lakomski-Laguerre

    () (University Picardie Jules Verne and CRIISEA)

  • Stéphane Longuet

    () (University Picardie Jules Verne and CRIISEA)

Abstract

Abstract We develop a critical interpretation of Schumpeter’s thinking that allows two alternative ‘operationalizations’ of his theoretical approach to economic development and institutions. We show that they are compatible with the two dominant neo-Schumpeterian economic dynamics approaches - one focused on the national economic and institutional conditions required for a commitment to an innovation based strategy for competing at the world technology frontier, and one that combines Schumpeter’s insights on technological change with Keynesian policies supporting demand for consumer goods and investment in the context of radical uncertainty and heterogeneous behavior. The implications for policy of these two perspectives are discussed in relation to Schumpeter’s ambiguous stance on economic policy issues. Finally, based on an articulation of institutions and individual behavior in light of recent developments in behavioral economics, we provide some implications for new perspectives on economic policy.

Suggested Citation

  • Agnès Festré & Odile Lakomski-Laguerre & Stéphane Longuet, 2017. "Schumpeter and Schumpeterians on economic policy issues: re-reading Schumpeter through the lens of institutional and behavioral economics. An introduction to the special issue," Journal of Evolutionary Economics, Springer, vol. 27(1), pages 3-24, January.
  • Handle: RePEc:spr:joevec:v:27:y:2017:i:1:d:10.1007_s00191-015-0442-4
    DOI: 10.1007/s00191-015-0442-4
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    More about this item

    Keywords

    Schumpeter; Institutional economics; Behavioral economics; Innovation; Economic policy;

    JEL classification:

    • B00 - Schools of Economic Thought and Methodology - - General - - - History of Economic Thought, Methodology, and Heterodox Approaches
    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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